Defeasance

{
  "id": "MLC-T-LAW-001524",
  "term": "Defeasance",
  "field": "Law",
  "definition": "A legal provision that renders a contract or deed void upon the occurrence of a specified condition, or the act of setting aside a debt or obligation by providing funds or collateral sufficient to cover it. In finance, it often involves replacing a borrower's obligation with a new, risk-free asset, such as government bonds. This mechanism is used to remove debt from a company's balance sheet.",
  "url": "https://mlchart.com/terminology/law/defeasance/"
}